Over five million over 50s in the UK look set to retire early, according to new research – many because new technology will make them redundant. What will it take to ensure you leave work at a time of YOUR choosing? By Tony Watts OBE

Lamplighters, knocker uppers, leech collectors, switchboard operators, linotype operators…

It’s not difficult to think of a long list of jobs that no longer exist. To that you could add whole industries that once employed tens and even hundreds of thousands – coal mining, textiles and steelworking for example – which barely support a small fraction of that today… in our country at least.

Technology moves on, with new roles (eventually) taking up the slack. How many app developers, web designers or social media influencers were there 20 years ago? The challenge society faces is to ensure that those people currently in mid or later career get the opportunity to retrain to fill the jobs that are coming down the road.

New research from tech company makes the point that not only has “the rapid acceleration of technology and AI in the workplace been a factor leading some to retire early”, but that a further 450,000 are at risk of being forced to do so in the next year alone, primarily due to not having the modern skills employers are currently looking for.

What’s more, a total some 5.3 million people currently in their 50s and 60s look set to make that move over the coming years. And while many in their 50s and 60s are retiring early in a strong financial position, others are being forced to leave their jobs early because of health concerns or skills deficits – with major consequences for their finances in retirement.

A major concern for many is that their skills set will leave them open to redundancy in the future – particularly as the pace of technological change means that many of “today’s jobs” won’t be here in a few years’ time.

This is particularly acute when it comes to tackling the impact of digital transformation. Over a quarter (27%) find new technology difficult to get used to, while a third of early retirees (33%) say the tech skills requirements of the modern workplace have made it more difficult for them to return to work.

Bad for business

The news is also bad for businesses. Workers over the age of 50 are also an incredible asset to the businesses they work for and for the wider economy. From decades of experience to institutional company knowledge, there are significant benefits to retaining workers over 50.

So can anything be done to keep more employees in the labour market for longer?

Research suggests that skills, training and development are some of the most effective ways to incentivize the over 50s to stay in the workforce.

However, significant numbers feel they are being deprioritized compared to their younger colleagues. Half of those over 50 in work say they haven’t taken part in any kind of training course in at least a year

A 2021 study by City & Guilds Group found that in the previous five years, only half (53 per cent) of people aged 55 and over took part in formal workplace training, compared to 67 per cent of 35- to 54-year-olds and 83 per cent of 18- to 34-year-olds.

Stay in control

That said, almost four in ten of those who are planning to leave the workforce in the next twelve months alone (37%) would be willing to stay in their current job if their employer offered them the opportunity to go on training courses and develop new skills.

If you are keen to “futureproof” your career, and leave at a time of your choosing, rather than that decision being made for you, then “upskilling” and retraining might be critical. If you feel you aren’t getting the training you need, perhaps being overlooked for younger people in your organisation, perhaps now is the time to talk to your employers and make sure you will have the skills you need to move with the times… and not become one of today’s lamplighters or leech collectors…

Check when YOU can afford to retire

Want to know just how resilient your retirement finances are to you reducing your hours or retiring early?

There’s a simple solution: use your RetireEasy LifePlan to run different scenarios to show what making these choices now will mean in the years ahead. That will help you make far more informed choices going forward. If your subscription has lapsed, just a few pounds a month can give you the facts you need to make the best decision for your future wealth.